A consumer has a utility function equal to U = xy and an exogenous budget constraint...

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A consumer has a utility function equal to U = xy and an exogenous budget constraint equal to 20. Denote the prices of x and y as Px and Py, and let Px 1 and Py = 2. Write the Lagrangean that represents the consumer's optimization problem, using to denote the Lagrange multiplier. = (2 points) What is the intepretation of X? (4 points) Solve the consumer's utility maximization problem to find the optimal consumption of x and y. You must show your work. A consumer has a utility function equal to U = xy and an exogenous budget constraint equal to 20. Denote the prices of x and y as Px and Py, and let Px 1 and Py = 2. Write the Lagrangean that represents the consumer's optimization problem, using to denote the Lagrange multiplier. = (2 points) What is the intepretation of X? (4 points) Solve the consumer's utility maximization problem to find the optimal consumption of x and y. You must show your work.

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The consumers optimization problem can be represented by the Lagrangean as follows Lx y A xy A20 Px ... View the full answer